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Tuesday, October 21, 2014

SPX Daily Chart Fibonacci Retracements Price is at 62% Fib

The chart shows the Fibonacci retracements for the move down from the 2019 top to the 1820 low. Price recovered to the 32% Fib at 1896, which represents the 50-week MA at 1891 and immensely important 12-month MA at 1895, and punched up through yesterday to create a move to the 50% Fib at 1920. Price dances here today exploding 16 points higher at the opening bell.The important 200-day MA at 1906 and 10-month MA at 1908 and strong horizontal resistance at 1910 all fold like a cheap suit. The moving averages needed back tested but price simply blew up through a very bullish indication. Considering the importance of the moving averages, price should show more respect to the 1906-1910 range. If bulls can race above the 50% Fib the 62% Fib at 1943 would be in play. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.Note Added 9:47 AM: SPX punches up through the 50% Fib now printing above 1922 over 100 handles off the 1820 low only four days ago. Strong support is 1920 and 1910. Strong overhead resistance is 1923-1924, 1928 and 1936. Note the gap fill needed at 1927-1928 from seven days ago. Bullish traders receive fuelfrom the weaker yen overnight and the ECB promising more stimulus. The central bankers are the market. The market bottom four days ago was created by Fed's Bullard's happy talk about a potential QE 4. The Fed and other central bankers continue to create great wealth for those that own stocks while saying to H*ll with the middle class and poor; 'let them eat cake'.Note Added 10:02 AM: HOD 1923.99. The line in the sand is drawn at the 1923-1924 resistance.Bulls win big above 1924. Bears can remain in the game if they keep price under 1923 and heading lower.Note Added 10:47 AM: Bulls push up through 1924 R and fill the 1927-1928 gap now trying to chomp through the strong 1928 resistance. HOD 1927.72. The 20-day MA is 1932.81 and dropping and price would like to back test this moving average going forward. The bulls are not taking any prisoners today. Dip-buyers are flooding into the market and traders are worried that they will miss the recovery rally so orders rush into the market to buy at any price. Traders chase price higher. AAPL is up +2.2% at 101.97 but off the 103.15 high.Note Added 11:37 AM: Shorts throw in the towel creating a huge short-covering rally. Equities are running vertical printing at the highs of the day. The SPX pushes up through the strong 1928 resistance, that now becomes support, and targets 1936 R next. The 20-day MA is 1933.01. HOD 1931.86. Markets are in a huge melt-up move today.Note Added 11:41 AM: Here is the test of the 20-day at 1933. Equities are in a bullish frenzy.Note Added 8:08 PM: The 62% Fib is 1942.88. The HOD is 1942.45. How do you like those apples? You can see how the Fibonacci's matter.Tomorrow decides if price wants to poke up through the 62% Fib and move far higher, or, if the 62% Fib holds to allow the bears to growl again.

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